Dao Anh Dung, deputy chairman of the People’s Committee, said that the Department of Planning and Investment is appraising the financial capacity of Vietnamese investor Vien Dong Investment and Trade JSC and its local partners.

If the firms fail to make a deposit for the project, their license will be withdrawn. Recently, an officer at Vien Dong said that it has found a partner to ensure adequate funds to build the facility. Licensed in 2008, the Can Tho Oil Refinery was initially de- signed to cover 250 hectares in Phuoc Thoi Ward in O Mon district and have an annual capacity of two million tons of crude oil.

The U.S.-based Semtech Limited signed an agreement with Vien Dong to set up a joint venture (JV) to carry out the project, with the Vietnamese company owning 30% of the holdings.

However, in July 2009, the investors adjusted the refinery’s area down to 50 hectares, with its investment lowering to $350 million, following the stake transfer from the U.S. firm to Hoa Viet Group. Since then, not much has been done.

Vietnam has so far approved five oil refinery projects, with only Dung Quat oil refinery being operational in the central province of Quang Ngai. How- ever, the Dung Quat refinery can meet just one third of the country’s demand for petroleum products.

Many foreign investors, including those from Thailand and Japan, have shown their interests in oil refinery projects Vietnam.

Tuoi Tre News - December 11, 2012